A large north-of-Pretoria retailer has taken the Tshwane metro back to court to dispute a R49.8-million electricity bill.

The non-payment stems from 2018 and 2022, due to the continuous failure of the body corporate to pay for services, according to court documents.

The court had recently directed the metro to disconnect the power supply to six sectional units of the Zambezi Retail Park, which are operated by Vresthena (Pty) Ltd.

Vresthena operates sections 1 to 4, 7 and 8 at the centre.

On April 18 the Supreme Court of Appeal (SCA) found that “a deliberate non-payment of services had been occurring”.

The SCA judgment was handed down by judges Yvonne Mbatha, Wendy Hughes, Fayeeza Kathree-Setiloane, Baratang Mocumie and acting judge Raylene Keightley.

In the 2022 Pretoria high court decision Tshwane was appealing, it alleged that the Zambezi Retail Park Body Corporate had failed to pay for services since 2022. This led it to implement credit control measures, including the disconnection of electricity to induce payment of the outstanding revenue.

These measures have however been resisted by Vresthena.

Metro spokesperson Lindela Mashigo said following the SCA decision, Tshwane had served a notice to disconnect the properties in debt to the tune of R49.8-million. However, Vresthena had begun proceedings to fight back.

“Tshwane has been taken to Constitutional Court by the Vresthena (Pty) Ltd,” said Mashigo.

The Zambezi Retail Park shopping centre, on the corner of R573 Moloto Road and R513 Sefako Makgoto Drive, is partly run by Vresthena through a sectional title plan.

It sought an order compelling Tshwane to accept and reconsider its application for a separate electricity connection for its sections of the retail park and sought restoration of the electricity and water supply.

On June 20, 2022, the high court granted the urgent order interdicting Tshwane from implementing its credit by-laws and terminating the electricity supply to the Zambezi Retail Park Centre.

The SCA overturned the decision.

“Vresthena has not given any reasons why the body corporate has failed to make payment for the consumption of the electricity in the Retail Park. There was no averment (formal statement) by Vresthena that, they, as owners of various sections, have made payments to the body corporate, nor compelled the body corporate to perform its mandate,” the judgment read.

“They simply allege that the body corporate is dysfunctional and expect the municipality to regulate the body corporate’s affairs. A municipality has no right to interfere in the affairs of the Sectional Titles Scheme.

I find it disturbing that instead of compelling the body corporate, whom Vresthena cited as a second respondent, to perform its mandate, it failed to do that,” read the judgment.

The SCA added that Tshwane was enjoined to implement the credit and debt collection measures against the body corporate and terminate the supply of electricity to the retail park.

“The order of the high court failed to take this into account. It assumed, despite the history of ongoing non-payment over many years, that Vresthena and the other owners had a right to receive electricity without imposing the reciprocal obligation on the owners for payment of the substantial arrear amount. It even sanctioned the illegal reconnection of electricity by civilians other than the city.”

Tshwane spokesperson Lindela Mashigo said, in support of municipal obligations, the SCA upheld the arguments and found that the high court should not have granted the interdict.

“The SCA judgment confirms the obligation of customers to pay for services rendered and empowers the city to enforce its credit control by-laws.

The SCA also confirmed that sectional title owners cannot hide behind a dysfunctional body corporate to compel the city to provide services to which sectional title owners will not ordinarily be entitled.

It must be emphasised that it is critical that body corporates must ensure their affairs are properly managed. If not, sectional title unit owners must take recourse against the body corporate in terms of the applicable laws governing the functioning of sectional titles in the country.”

Rekord attempted to get a comment from the management of the retail park with no response at the time of going to print.

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